SYSTECH SOLICITORS LEGAL UPDATE

• Precautionary Attachment Order – This prevents
money from being wrongfully dispersed, so
the client will not be able to wrongfully call in
a performance bond. There are 2 ways to do
this. The bond monies can either be frozen in
the contractor’s account (i.e. “pre-call”) or in the
client’s account if the order has already been
made (i.e. “post-call”).
• Performance Order / Incarceration Order – In
order for this order to be made the debt has to
be uncontested (i.e. there has to be a written
acknowledgement that the amount is due),
the due date has to have passed, and the debt
should be unconditionally payable. The debtor
should have been served a demand notice via
registered mail giving him no less than 5 days
in which to pay up. For this order a summary
proceedings is necessary. The judge will then
issue a decision within 3 days. Non-compliance
with a Performance Order to pay can lead to the
debtor being sent to prison.
Conclusion
It is clear that in any contract, prevention is better
than cure. The above are options available to the
contractor when payment issues arise, however
raising disputes are a last resort. Amicable resolution
and remaining within the parameters of the contract
are always the best approach.
Caution must be taken before considering the
application of provisions of the Civil Code and parties
should seek local law advice. The local courts of
the UAE are not always at ease with the complex
nature of international construction contracts and,
as such, the results of what may on paper seem
a straightforward action can often be quite the
opposite.
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